1.Fedrick Limited acquires 188.2015 Million of a half year LIBOR + 5.00% for a period

of two years. The organization expects an ascent in LIBOR, henceforth it proposes to

purchase a Cap Option from its Bankers at the strike pace of 208.00%. The single amount

premium is 11.00% for the whole reset time frames and the fixed pace of revenue is

7.00% per annum. The genuine situation of LIBOR during the approaching reset

period is as under:

Reset Period LIBOR

1 9.00%

2 9.50%

3 10.00%

You are needed to show how far loan cost hazard is supported through Cap

Alternative.

For computation, work out figures at each stage up to four decimal focuses and

sum closest to . It ought to be important for working notes.

2. Overlaid Edged Securities are

a. Govt. Protections b. Organization's protections

c. Any of the above d. None of these

3. In India, forfaiting administrations are offered by

a. RBI b. SBI

c. EXIM bank d. All the abovementioned

4. The little financial backers' door to go into huge organizations is

a. Value shares b. Inclination shares

c. Bonds d. Shared asset

5. Currency Market shared asset is otherwise called -

a. Development store b. Adjusted asset

c. Pay store d. Money store

6. store puts resources into profoundly fluid protections like business paper.

a. Open finished asset b. Close finished asset

c. Adjusted asset d. MMMF

7. Giving calculating administrations in India was first idea by

a. Vaghul advisory group b. Malhotra Committee

c. Tanden Committee d. None of these

8. The market for very brief period credit is called

a. Call advance market b. short notification market

c. depository charge market d. business charge market

9. - bills are drawn by project workers on the public authority divisions for the merchandise provided

by them.

a. Usance charges b. T-charges

c. Clean bills d. Supply bills

10. - is otherwise called 'Modern Paper"

a. Depository charges b. Business bills

b. Monetary convenience charges d. Business paper